The US Treasury Secretary has issued a stark warning regarding the potential consequences of failing to raise the nation’s debt limit. In a statement released earlier today, she outlined the severe economic repercussions that could arise if Congress does not take action to increase the borrowing limit before the deadline.

Potential Economic Fallout

According to the Secretary, a failure to raise the debt ceiling could trigger a series of catastrophic events, including:

• A potential default on US debt obligations, damaging the country’s credit rating and increasing borrowing costs.
• Disruptions to financial markets, leading to increased volatility and uncertainty.
• A significant contraction in economic activity, potentially triggering a recession.
• Delays in payments to Social Security recipients, veterans, and other beneficiaries of government programs.

Call for Bipartisan Action

The Treasury Secretary urged Congress to act swiftly and responsibly to raise the debt ceiling, emphasizing that it is a shared responsibility to protect the nation’s economic stability. She stressed that failing to do so would have devastating consequences for American families and businesses.

“Raising the debt ceiling is not about authorizing new spending; it is about paying for obligations that Congress has already approved,” the Secretary stated. “It is essential that Congress act in a timely manner to avoid a self-inflicted crisis.”